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Lockheed Martin
Lockheed Martin is an American global aerospace, defense, security and advanced technologies company with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in Bethesda, Maryland, in the Washington, DC, area. Lockheed Martin employs 116,000 people worldwide. Lockheed Martin stands as one of the world's premier companies in the aerospace, defense, security, and technologies industry; it is the world's largest defense contractor based on revenue for fiscal year 2014. In 2013, 78% of Lockheed Martin's revenues came from military sales; it topped the list of US federal government contractors and received nearly 10% of the funds paid out by the Pentagon. In 2009 US government contracts accounted for $38.4 billion (85%), foreign government contracts $5.8 billion (13%), and commercial and other contracts for $900 million (2%). Lockheed Martin operates in five business segments; this comprises Aeronautics, Information Systems & Global Solutions, Missiles and Fire Control, Mission Systems and Training, and Space Systems. The company has received the Collier Trophy six times, including in 2001 for being part of developing the X-35/F-35B LiftFan Propulsion System, and most recently in 2006 for leading the team that developed the F-22 Raptor fighter jet. Lockheed Martin is currently developing the F-35 Lightning II and leads the international supply chain, leads the team for the development and implementation of technology solutions for the new USAF Space Fence (AFSSS replacement) and is the primary contractor for the development of the Orion Spacecraft command module. The company is also investing into the exploration of emerging capabilities in the areas of healthcare systems, renewable energy systems, intelligent energy distribution and compact nuclear fusion. History 1990s Merger talks between Lockheed Corporation and Martin Marietta began in March 1994, with the companies announcing their $10 billion planned merger on August 30, 1994. The deal was finalized on March 15, 1995, when the two companies' shareholders approved the merger. The segments of the two companies not retained by the new company formed the basis for the present L-3 Communications, a mid-size defense contractor in its own right. Lockheed Martin also later spun off the materials company Martin Marietta Materials. Both companies contributed important products to the new portfolio. Lockheed products included the Trident missile, P-3 Orion, F-16 Fighting Falcon, F-22 Raptor, C-130 Hercules, A-4AR Fightinghawk and the DSCS-3 satellite. Martin Marietta products included Titan rockets, Sandia National Laboratories (management contract acquired in 1993), Space Shuttle External Tank, Viking 1 and Viking 2 landers, the Transfer Orbit Stage (under subcontract to Orbital Sciences Corporation) and various satellite models. On April 22, 1996, Lockheed Martin completed the acquisition of Loral Corporation's defense electronics and system integration businesses for $9.1 billion, the deal having been announced in January. The remainder of Loral became Loral Space & Communications. Lockheed Martin abandoned plans for a $8.3 billion merger with Northrop Grumman on July 16, 1998, due to government concerns over the potential strength of the new group; Lockheed/Northrop would have had control of 25% of the Department of Defense's procurement budget. Lockheed Martin provided NASA with measurements in US Customary force units when metric was expected, resulting in the loss of the Mars Climate Orbiter at a cost of $125 million. The cost for spacecraft development was $193.1 million. 2000s In May 2001, Lockheed Martin sold Lockheed Martin Control Systems to BAE Systems. On November 27, 2000, Lockheed completed the sale of its Aerospace Electronic Systems business to BAE Systems for $1.67 billion, a deal announced in July 2000. This group encompassed Sanders Associates, Fairchild Systems, and Lockheed Martin Space Electronics & Communications. In 2001, Lockheed Martin won the contract to build the F-35 Lightning II; this was the largest fighter aircraft procurement project since the F-16, with an initial order of 3,000 aircraft. In 2001, Lockheed Martin settled a nine–year investigation conducted by NASA's Office of Inspector General with the assistance of the Defense Contract Audit Agency. The company paid the United States government $7.1 million based on allegations that its predecessor, Lockheed Engineering Science Corporation, submitted false lease costs claims to NASA. On May 12, 2006, The Washington Post reported that when Robert Stevens took control of Lockheed Martin in 2004, he faced the dilemma that within 10 years 100,000 of the about 130,000 Lockheed Martin employees – more than three-quarters – would be retiring. On August 31, 2006, Lockheed Martin won a $3.9 billion contract from NASA to design and build the CEV capsule, later named Orion for the Ares I rocket in the Constellation Program. In 2009, NASA reduced the capsule crew requirements from the initial six seats to four for transport to the International Space Station. On August 13, 2008, Lockheed Martin acquired the government business unit of Nantero, Inc., a company that had developed methods and processes for incorporating carbon nanotubes in next-generation electronic devices. In 2009, Lockheed Martin bought Unitech. 2010s On November 18, 2010, Lockheed Martin announced that it would be closing its Eagan, Minnesota location by 2013 to reduce costs and optimize capacity at its locations nationwide. In January 2011, Lockheed Martin agreed to pay the US Government $2 million to settle allegations that the company submitted false claims on a U.S. government contract for that amount. The allegations came from a contract with the Naval Oceanographic Office Major Shared Resource Center in Mississippi. On May 25, 2011 Lockheed Martin bought the first Quantum Computing System from D-Wave Systems. Lockheed Martin and D-Wave will collaborate to realize the benefits of a computing platform based upon a quantum annealing processor, as applied to some of Lockheed Martin's most challenging computation problems. Lockheed Martin established a multi-year contract that includes one system, maintenance and services. Potentially an important milestone for both companies. On May 28, 2011 it was reported that a cyber-attack using previously stolen EMC files had broken through to sensitive materials at the contractor. It is unclear if the Lockheed incident is the specific prompt whereby on June 1, 2011, the new United States military strategy, makes explicit that a cyberattack is casus belli for a traditional act of war. On July 10, 2012, Lockheed Martin announced it was cutting its workforce by 740 workers to reduce costs and remain competitive as necessary for future growth. On August 2, 2012, the Vice President for Business Development, George Standridge stated that his company has offered 6 more C-130J aircraft to the Indian Air Force, for which discussions are underway with the Indian Government. On November 27, 2012, Lockheed Martin announced that Marillyn Hewson will become the corporation's chief executive officer on January 1, 2013. On January 7, 2013, Lockheed Martin Canada announced that it will be acquiring the engine maintenance, repair and overhaul assets from Aveos Fleet Performance in Montreal, Canada. On July 3, 2013, Lockheed Martin announced that it was partnering with DreamHammer to use the company's software for integrated command and control of its unmanned aerial vehicles. Lockheed Martin teamed up with Bell Helicopter to propose the V-280 Valor tiltrotor for the Future Vertical Lift (FVL) program. In September 2013, Lockheed Martin acquired the Scotland-based tech firm, Amor Group, saying the deal would aid its plans to expand internationally and into non-defence markets. In March 2014, Lockheed Martin acquired BEONTRA AG, a leading provider of integrated planning and demand forecasting tools for airports around the world, planning to expand their business in commercial airport information technology solutions. On November 14, 2013, Lockheed announced they would be closing their Akron, Ohio facility laying off 500 employees and transferring other employees to other locations. On June 2, 2014 Lockheed Martin received a Pentagon contract to build a space fence that would track debris, keeping it from damaging satellites and spacecrafts. In September 2014, Lockheed agreed a deal to sell 40 F-35 fighter jets to South Korea for delivery between 2018 and 2021, for a fee in the region of $7.06 billion. On July 20, 2015, Lockheed Martin announced plans to the purchase of the Sikorsky Aircraft from United Technologies Corporation at a cost of $7.1 billion. The Pentagon criticizes the plan as causing reduction in competition. Final approval (from the Chinese government) came in November 2015. Corruption Investigation On March 3, 2012, the US Justice Department said that Lockheed Martin had agreed to settle allegations that the defense contractor had sold overpriced perishable tools used on many contracts. The DoJ said the allegations were based specifically on the subsidiary Tools & Metals Inc's inflation of costs between 1998 and 2005, which Lockheed Martin then passed on to the U.S. government under its contracts. Further, in March 2006, Todd B. Loftis, a former TMI president, was sentenced to eighty-seven months in prison, and ordered to pay a fine of $20 million following his guilty plea On the February 20, 2013 Lockheed Martin Corp complied with the U.S. District Court in New York, agreeing to pay a $19.5 million lawsuit to conclude a securities fraud class-action legal battle which had accused the company of deceiving shareholders in regards to expectations for the company's information technology division. On December 20, 2014, Lockheed Martin Integrated Systems agreed to settle a False Claims Act lawsuit paying $27.5 Million to finalize allegations that it had knowingly overbilled the taxpayer for work performed by company staff who did not hold the relevant, essential qualifications for the contract. Criticism In 2013, Lt. Gen. Christopher Bogdan criticized the company's F-35 fighter jet program. The general said: "I want them both to start behaving like they want to be around for 40 years...I want them to take on some of the risk of this program. I want them to invest in cost reductions. I want them to do the things that will build a better relationship. I'm not getting all that love yet." The criticism comes in the wake of previous criticism from former Defense Secretary Robert Gates regarding the same program. Organisation Aeronautics * Lockheed Martin Aeronautics Information Systems and Global Solutions * Lockheed Martin IS&GS - Civil * Lockheed Martin IS&GS - Defence & Intelligence Solutions * Lockheed Martin Technology Ventures Mission Systems and Training * Lockheed Martin Mission Systems and Training Space * Lockheed Martin Space Systems * Sandia Corporation Others * Lockheed Martin Canada * Lockheed Martin Australia * Lockheed Martin Advanced Technology Laboratories * LMC Properties * Lockheed Martin Enterprise Business Services * Lockheed Martin Finance Corporation * Lockheed Martin U.K. * SIM Industries Joint Ventures * International Launch Services (with Krunichev, RSC Energia) * Lockheed Martin Alenia Tactical Transport Systems (with Finmeccanica-Alenia, now folded) * MEADS International (with EADS and MBDA) * Space Imaging (46%, remainder public) * United Launch Alliance (with Boeing) * United Space Alliance (with Boeing) * Kelly Aviation Center (with GE and Rolls-Royce) * Protector USV – an unmanned surface vehicle with Rafael Advanced Defense Systems and BAE Systems * Defense Support Services (with Day & Zimmermann) * Tata Lockheed Martin Aerostructures Limited (with Indian company Tata Advanced Systems Limited) * AMMROC (Advanced Military Maintenance Repair and Overhaul Center) (with Mubadala and Sikorsky) Category:Corporations